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I!1'C[F&!) POSTAL RATE Commlsston WASHINGTON, DC

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I!1'C[F&!) POSTAL RATE Commlsston WASHINGTON, DC BEFORE THE i!1‘C[f&!) POSTAL RATE COMMlSStON ‘(3 Ii WASHINGTON, DC. 20266~661 5 2J, p/j 90, pw:,I fi,\iE c”, OFFICEOF r//C s;hkk,>,,,, POSTAL RATE AND FEE CHANGES,2001 i Docket No. R2001-1 RESPONSE OF UNITED STATES POSTAL SERVICE WITNESS TAYMAN TO INTERROGATORIES OF THE OFFICE OF THE CONSUMER ADVOCATE (OCA/USPS-T&l-21) The United States Postal Service hereby provides the responses of witness Tayman to the following interrogatories of the Office of the Consumer Advocate: OCA/USPS-T6-l-21, filed on October 3,200l. Each interrogatory is stated verbatim and is followed by the response. Respectfully submitted, UNITED STATES POSTAL SERVICE By its attorneys: Daniel J. Foucheaux, Jr. Chief Counsel, Ratemaking 475 L’Enfant Plaza West, S.W. Washington, D.C. 20260-l 137 (202) 266-2999; Fax -5402 October 17,200l RESPONSE OF UNITED STATES POSTAL SERVICE WITNESS TAYMAN TO INTERROGATORIES OF THE OFFICE OF THE CONSUMER ADVOCATE OCA/USPS-16-l. The following refer to the USPS FY 2001 and FY 2002 Operating Plans. (a) Please provide the FY 2001 Operating Plan and the most current USPS FY 2002 Operating Plan by accounting periods for Postal Service operating revenues, appropriations, investment income, expenses and volumes. 04 For each of the thirteen accounting periods presented in part “a” of this interrogatory, please provide the most current USPS Operating Plan with operating revenues broken out by mail class and subclass cost categories. RESPONSE: (a) The FY 2001 Operating Plan by accounting period is attached. The FY 2002 accounting period Operating Plan has not been finalized. However, the FY 2002 Operating Plan for the categories requested is as follows: U.S. Postal Service FY 2002 Operating Plan (Millions) Operating Revenue $66746.8 Appropriations 47.6 Investment Income 29.1 Total Revenue $66823.5 Total Expenses 70‘172.6 Net Loss $ 1,349.l Total Mail Volume 209,939 04 As indicated in response to part (a) above, The FY 2002 accounting period Operating plan has not been finalized. However, the FY 2002 operating revenue by class of mail is as follows: RESPONSE OF UNITED STATES POSTAL SERVICE WITNESS TAYMAN TO INTERROGATORIES OF THE OFFICE OF THE CONSUMER ADVOCATE U.S. Postal Service FY 2002 Operating Revenue Plan (Millions) RESPONSE OF UNITED STATES POSTAL SERVICE WITNESS TAYMAN TO INTERROGATORIES OF THE OFFICE OF THE CONSUMER ADVOCATE OCAIUSPS-T6-2. Please provide the USPS FY 2001 and FY 2002 budgets broken down by accounting period as used in the following schedules and pages of the Financial and Operating Statements filed each accounting period with the Commission. (a) Highlights on page 1. 03 Statement of Income & Expense on page 2. Revenue by Category on page 5A. ;:; Expense Analysis on page 6. (e) Analysis of Operating Expenses on page 7. (0 Analysis of Non-Personnel Expenses on page 8. (9) Work Hours & Overtime/Sick Leave ratios RESPONSE: (a-g) As indicated in the above question, the information requested has been filed with and is available from the Commission for accounting periods 1 - 12 of FY 2001. The attached provides the requested plan information for accounting period 13, FY 2001. As indicated in response to OCA/lJSPS-TG-1, the FY 2002 accounting period Operating Plan has not been finalized. Available budget information for FY 2002 can be found in the FY 2002 Integrated Financial Plan included in my response to OCAAJSPS-TG-7. Highlights Accounting Period 13, FY 2001 (Millions) Accounting Period 13 Year&Date Budget Budget f 5,149.1 T&al Revwue (I) $ 67,739.6 5179.9 Tobl Expense (2) 66.169.6 $ (-230.0) locomel(Lorr) s (-~.Ol $ 651.9 CaphI CorMbwnb (3) $ qO0.7 121.3 Tobl Work Roun 1,612.0 15$62.2 Mail volum 207,640.l lldc Tot& may 1101MI dur to mundlnp. Note RDIIVdunw nurnbrn sm pmlknhq numberswd w whjncl to change. (1) TIM mwnw pIa m6acb mba ” nquostad h thr R2oool OmnibusRata Case. Thesemngad 6.4%. Rate8impbnm(cd January 7, 3Nl1 haed 0” Pods1Rste CornmIssion (PRC) dscbbn aveqpd 4.(x. (3)~se4xrplnutbnom~lgl6nkmln9tr~~~~~. (1)TIM Upw plm w mducad tmm 63.6hlllb~~ to 62.6blllbn. Current Last Actual Number of: Period Period SPLY post Gtttcea Actlvr Posbl Gwned Vehicbs AdminhlnUve opmtion* Polslbb city D4livefies (000) City Getivmy Roub4 Runl Roubn C~mef Employeea (Excludes Inspector General) Cwurl Employeea Tranriibnrl Employees Statement of Income & Expense Accounting Period 13, FY 2001 (f Millions) Current Period Year-to-Date Budset Budget t 5147.0 Operating Revenue * s 67,712.5 S.22T.4 Operating Expense 99.135.5 $ (-90.4) Income (Loss) From Operations S 1,577.0 2.1 Investment Income 27.1 - 29.6 Interest Expense .423.l - 123.9 Interest on Deferred Ret. Liabilities - 1,611.O s (-230.8) Incomsl(Loss) s (-430.0) [ ]=Unfavorable variance to budget Note: Totals may not sum due to rounding. l The revenue plan reflects rates as requested in the R2900-1Omnibus Rate Case. -2- - - - _-^ ..-. -.-_-- REVENUE BY CATEGORY Accounting Period 13, FY 2001 (S Millions) current Period Year-to-Date Budget I Budget i Commercial Revenue t 2.363.0 Permit Revenue 3 m60.9 1.514.4 Other CommendI Accounts Revenue 21.369.2 $ 3,696.Z Total CommercialRevenue $ 59,439.l Retail Revenue 970.5 Retail Postage Revenue 13.719.1 114.6 Retail Servkes Revenus 991.7 0.9 Retail Prcducts Revenue 125.1 125.6 Other Retail Channels Revenue 1.7054 ) 1.227.6 Total Ratail Revenue ) 16,621.3 $ 5,126.0 Total Commercial(L Retail Revenue $ 67,059.4 15.9 olherlnccNne 566.4 5.1 Revenue Forgone 66.7 $ 5,147.0 Total Operating Revenue $ 67,712.5 2.1 Investment lnwne 27.1 s 5.mL Total Revenue l [ ]=Unfavorablevariance to budget Note: Totals may not sum due to rounding. l The mvenue plan reflects rates as requested In the R2tW-1 Omnibus Rate Case. -SA- . - ._ .- ^. ~ .- ~~ - EXPENSE ANALYSIS Accounting Period 13, FY 2001 (f Millions) currentPerfod Year-to-Date Budget Budgs4 S 3,904.2 PerecnnelCompensation s 51.594.4 374.6 Transporlation 4,825.g . 345.2 suppfii EL6ervices 3,432.0 693.4 olhel 6293.2 3 1.323.2 Subtotal 3 14551.1 $ 5227.4 Total Operating Expense $ 66,135.5 26.6 InterestExpense 423.1 Intereston DeferredRet. Liabiliks 1.611.0 Total Expense ]=Unfavorabfevariance to budget Rote: Totefs may not sum due to rounding. * In Fiscal Year (FY) 2001. the Postal Service began accruing for the cost of holiday transportation when incurred. rather than recognizing the expense when paid. The impact of this change in accounting policy is to increase the reportad growth in AP 4 transportation expanses by 5137 million, relative to the same period last year (SPLY). Future accounting periods in FY 2001 will also be less comparable to the prior year, as the reported growth will be slightty tower than it otherwise would have been, compared to SPLY. -a- ANALYSISOF NON-PERSONNELEXPENSES Accounting Period 13, FY 2001 (I Milliins) Year-to-Oste s 314.6 TmlXpOMiM s 4.8259 345.2 SUp+4ii&Sl3Wk?S 3,432.0 180.2 - 2.272.9 78.0 Rent 911.0 67.0 Fual&uNities 503.0 30.3 Rurd caniar Equip hint Atbwance 390.3 38.1 vahi&Mantanance 414.5 57.9 Intomatim Tedwokqy 437.9 42.5 Building PmjecisExpensed 227.5 5.7 cffltrad Job ueaws 70.4 15.4 Travel 6 RekcatW 165.4 30.2 CommUnicatanS 252.5 6.2 conlmd taallons 73.4 4.4 Plinting 43.4 9.8 Trainin 93.5 5.3 Carfare8 Tolls 66.2 3.1 Vahii Him 44.8 3.9 AaTidantcoa 48.2 - 5.0 cqitalizad interest - 65.0 29.6 303.2 $ 1,323.2 Total C+herOpwaUng Expenses $14,551.1 .14. WORK HOURS ELOVERTIME/SICK LEAVE RATIOS Accounting Period 13, FY 2001 (Data in Thousands) cutTerlt Period Year-to-Date Budget Total Work Howe Budget operations: 770 .iUppOlt 10,225 30,007 -Mail Processing 411,529 13,311 -Rural Deiivery 173,295 36,- ather Delivery 463,910 2507 .Vehiclea 6elvicea 33,657 6,455 -plant 6 Equip Maird 85,437 19,340 -Customer Services 260,726 766 Controller 10,136 754 Human Resources 9,998 1,009 Customer 6ervice ELSales 14,343 5,141 Administration 67,037 4,667 Dther 51,701 121,260 Total Work Houn 1,611,999 Oveftima Budget I I Budget oveftima Ratio 8.0% Per 100 Work Howe 8.1% Sick Leave Budget t Budget I I Sick Leave Ratlo Per 100 Work Houn 1 )=Unfavorablevariance to budget l RecastedData Note: Totals may not sum due to rounding. ^_.. ^... ^ ,,,..,. “^ .- RESPONSE OF UNITED STATES POSTAL SERVICE WITNESS TAYMAN TO INTERROGATORIES OF THE OFFICE OF THE CONSUMER ADVOCATE OCANSPS-TG-3. Please provide the Postal Service’s FY 2001 and FY 2002 annual Capital investment Plan similar to the Capital investment Plans for FY 1999 and FY 2000 included in the record of Docket No. R2000-1 at Tr. 2/409-15. Also, please provide any updates to the FY 2001 and FY 2001 annual Capital investment plans. RESPONSE: Please see my response lo OCAfUSPS-TG-7 for copies of the FY 2001 and 2002 capital investment plan included in the integrated Financial Plan for each of these years. Please note that page 7 of the FY 2002 integrated Financial Plan reflects the revised FY 2001 Capital investment Plan that was reduced from $3.6 billion lo $1.6 billion. The FY 2002 capital plan was reduced from $3.7 billion to $2.4 billion.
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